Fitch cuts Norvik Banka view to stable

Fitch Ratings said it changed Norvik Banka's outlook to stable from positive. Its long-term issuer default rating is affirmed at B+, short-term issuer default rating at B, individual rating at D and support rating at 5. The support floor is affirmed as 'no floor'.

The change in outlook reflects the challenges the bank faces to grow while maintaining healthy performance in Latvia, Fitch said. The country's economy is going through a soft landing. The outlook change also reflects lower liquidity and increasing funding costs, the agency said.

The ratings are positively affected by the bank's healthier profitability, improved risk management systems and efforts to increase its domestic business aimed at creating a stronger and more sustainable franchise, Fitch added.

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